ASX stock of the day: Skyfii (ASX:SKF) shares shoot the moon

The Skyfii Ltd (ASX:SKF) share price is on fire today, climbing by more than 24%. Who is this company, and why are Skyfii shares charging today?

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The Skyfii Ltd (ASX: SKF) share price is on fire today, climbing 24.32% at the time of writing to 23 cents a share. The shares were priced at 18 cents at market close yesterday, and opened at 19 cents this morning before climbing to their current level. At this share price, Skyfii has a market capitalisation of $79.66 million.

However, even after today’s impressive gains, it’s worth noting that Skyfii is one volatile stock. Last Wednesday, Skyfii was as high as 26 cents a share, meaning this company was down 30% before today’s moves. Skyfii actually started 2020 off at 18 cents a share, which means today’s moves mirror the year-to-date gain for the company. However, if you picked up Skyfii for 7 cents back in March, you would be looking at a gain of more than 200% on today’s prices.

So who is this futuristic-sounding company? And why are Skyfii shares on fire today?

Who is Skyfii?

Skyfii describes itself as a global software and data services company that “transforms the way organisations collect, analyse and extract value from data.” The company calls itself the “world’s first omni-data intelligence company”.

According to the company:

We process billions of data points monthly, captured in the physical & digital world to help businesses better understand and improve the experiences of millions of customers every day

Skyfii has offices in 7 countries around the world, including in the United Kingdom, United States, South America and South Africa. The company has a range of products all designed to bring data together from multiple sources to improve “venue operations” and “visitor experiences”.

One of its flagship offerings is the OccupancyNow software. This software helps venues manage occupancy, social distancing, automatic staff alerts, COVID-19 regulation compliance and contract tracing.

It also has some other product offerings. Skyfii’s recently-acquired Blix program helps venues and stores measure customer traffic (including whether guests are wearing masks), while its ‘Guest Wifi’ program helps venues set up in-house Wifi services. Skyfii also offers services like camera installation and customer traffic sensors. These can do things like tell a venue whether it is at ‘COVID capacity’ at any in point, and provide live updates to customers whether they can enter particular rooms or areas based on these criteria. 

The company’s IO platform offers a subscription model for keeping all of this data in a useable and easily accessible format.

Some of Skyfii’s clients reportedly include Toyota, Porsche, Volkswagen, Country Road Group, Chanel and Swarovsky.

Why are Skyfii shares on fire today?

The catalyst for today’s share price jump appears to be the release of an update for the quarter ending 30 September 2020.

In this update, Skyfii told investors that revenue for the quarter came in at $3.4 million, which was up 21% on the previous quarter (ending 30 June 2020). This included recurring revenue of $2.2 million, up 7% from the previous quarter.

The company also reported that its ‘cash at bank’ now stands at $2.7 million, up 27% from the previous quarter. It has $1.9 million of a $2 million debt facility still undrawn.

Skyfii also announced a ‘strategic partnership’ with the US-listed Boingo Wireless Inc (NASDAQ: WIFI). According to Skyfii, the partnership will “equip Boingo to resell the fell suit of Skyfii’s IO products and services”. It also “anticipates further contract wins to be announced soon”.

These positive updates are what seem to be behind the surging Skyfii share price today.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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